Since the time of the big crisis in 1996-1997, the banking sector in Bulgaria has been on the ascent with assets and profits constantly increasing. Until the spring of this year, when one of the most notorious for its economic and political weight banks in the country – Corporate Commercial Bank crashed and went into illiquidity. Bulgaria’s Central Bank immediately closed it down and placed it under special supervision. On June 20, the bank ceased to function, and since then it has not been working with clients, nor has it been receiving or making payments. All this ignited clients’ indignation, whose bank accounts and savings are blocked. Corporate Commercial Bank depositors organized a national protest, via the social networks in front of the Bulgarian National Bank building in Sofia, demanding that the state help rescue the bank and that National Bank governor Ivan Iskrov hand in his resignation. Depositors have been commenting that their bank is capable of opening doors to its clients even now provided the Central Bank makes that call.

“I have run out of patience, we shall be here protesting every day,” say Martin and Natalia, a young couple with two children who have come here to express their indignation.

“Obviously the institutions are not competent enough and cannot do their job properly. We don’t care whose fault it is or whether there are many people involved, we just want our own money which is now blocked in the bank, we don’t want anything that is not ours. We blame the institutions which have done nothing all this time. The Bulgarian National Bank, the prosecutor’s office, they are all to blame. They made a mess of things, now they must put things right.”

Stefan Staikov says he joined the protest out of conviction that when there are laws they must be observed, and those who fail to do so – punished.

“I do not have a bank deposit but I know that these people are suffering the toll of what is happening. I am here, at this protest to give them my support because I want to live in a country that is normal. These people, whose deposits of up to EUR 100,000 are guaranteed, should have been given their money back long ago. We don’t need the European Commission to remind us that we are part of the European community rules and that these same rules apply here as well. There is no need to transpose each and every law into Bulgarian legislation. That is something the National Bank governor should have known for a long time, but he is obviously running someone else’s errands, so he stalls. Our politicians are playing their game in a way that does not benefit the citizens.”

Under Bulgarian law, savings of up to EUR 100,000 protected by the Deposit Guarantee Fund can only be paid out to depositors after the bank’s license has been retracted by the Bulgarian National Bank. But to this moment, this has not been done, as the National Bank conservators dispatched to assess the state CorpBank is in have not finished their work and no results are expected before end-October. However, European banking law and the European Commission hold a different view, very similar to that of the demands the CorpBank depositors have been making. Some ten days ago, the European Commission warned it may launch an infringement procedure for failure to observe European norms, which have precedence over national law. According to them, depositors should have had their savings paid out to them more than two months ago. The Ministry of Finance and the Central Bank admit this case is a mess and is very complicated, so no one is venturing to offer a way out. The government is an interim one and will be replaced by a regular cabinet in just a few weeks’ time, after elections are held on October 5. With no functioning parliament, the authorities are fearful of taking any radical steps which would certainly be painful and costly. The image and prestige of the Bulgarian National Bank were badly marred by the inconsistent and frequently injudicious policy and conduct of its management to an extent that now, its governor is absolutely certain there is no way he can keep his post. So, at Bulgaria’s Central Bank there is no one wanting or daring to take the Corporate Commercial Bank hot potato. While all those who have the authority and the powers to find a solution to the CorpBank crisis remain in standby mode, depositors are clamoring for their money.

English version: Milena Daynova